American-Chinese Conflict at the International Monetary Fund

The words given by a senior official at the International Monetary Fund to Financial Times newspaper, were precise and clear.
He said that: “When two elephants fight, grass under their feet is crushed”. What he meant by the two elephants were China and the USA, in a clear indication to the danger the International Monetary Fund may face through a conflict on exchange rate and pointing to the side which shoulders the responsibility of the big commercial unbalances between the biggest economic powers in the world which is the USA, and the most prominent rising economic power which is China, especially that this possibility has become very probable lately after the council of the International Monetary Fund governors has adopted a new authorization for international monitoring in the face of a direct opposition by China.
The old work framework, which dates back to 1977, needed to be modernized. So are we to witness a global economic war this time, or are we facing an international economic crisis?

The Gulf Stock Market OutPowers the Saudi Shares

Despite the negative expectations this week, all the great Gulf stock markets have succeeded in realizing profits.
The Saudi stock market lost 12% of its value till the second quarter of this year, whereas Emirate’s stock market have risen by the same average. Dubai’s stock market has risen during the second quarter of this year by 6%, and Abu Dhabi’s stock market has jumped by 18%. Moreover, Kuwait’s stock market has risen by 20%, at a time observers warn of the consequences of the Saudi stock market’s decline on the Gulf due to the withdrawal of the Saudi investors who returned to deal with their stock markets.

Damascus Stock Market Receives Tenders of Electronic Systems

The Directorate of Damascus Stock Market has received five price tenders for importing electronic systems necessary for the dealing hall at the stock market.

Egypt Buys 6 S.T.X South Korean Ships

The official Egyptian Al-Sharq al Awsat news agency quoted Deputy Chairman of the Administrative Board of the Egyptian Public Bank, Atiya Salem, as saying that the bank signed an agreement with the South Korean S.T.X Company for Ships Construction for financing Egypt’s buying of 6 ships with a total value of 251.6 million US$.

The Rise of World Oil Prices Increases the Deficit of Jordan’s Budget

The Jordanian Ministry of Finance has expected the financial deficit to rise in the budget of this year by 842 million US$ taking into consideration the external financial aids due to the increase of world oil prices.

Syria and China Discuss the Establishment of a Chinese Industrial City and a Technological Garden

Syrian Deputy Prime Minister for Economic Affairs Abdallah al-Dardari discussed with the Chinese Deputy Prime minister (Hua Jianmin) the possibility of building a Chinese Industrial City and developing the joint investment in the field of technology through establishing a technological garden in Syria, as well as the current preparations for building the Syrian-Chinese Oil Refinery in Deir al-Zour and building electricity generating stations in Syria.

Libya Offers 41 Projects for Gas Investment

A statement issued by the Libyan Oil Company said that Libya would launch a series of concessions for the foreign investors for the exploitation of 41 gas fields. It is worth mentioning that the national company for oil will conclude contracts with the winners in the second half of December.

“Fadesa” and “Al-Duha” Companies Establish a Company for Activating Real Estate and Tourism

The Spanish Company specialized in Real Estate “Fadesa” and the Moroccan real estate company “Al-Duha” have signed an agreement for establishing a company with the aim of holding projects of reviving real estates for both companies, as well as strengthening cooperation between them.

The Algerian Company for Insurances to Offer New Services Soon

The Algerian Company for Insurances has revealed that the establishment will offer soon services and new products in the field of helping services, and the accompanying insurances of insurance contracts.
Three of these services are dedicated for the branch of life insurance.

An Israeli-Palestinian Agreement on Keeping Issues of Energy Away from the Conflict

Dr. Omar Katana, Chairman of Energy Authority in the Palestinian Emergency Government said that the Israeli Minister of Infrastructure, Binyamin Ben Eliezer, has agreed on his request to (complete building a new electricity provider “161” kilo volt) between Israel and Gaza by November 2007 to address the needs of the northern parts of Gaza Strip.

Profits of the Kuwaiti Bank “Boubyan” Double

The Kuwaiti Islamic Bank “BBoubyan” announced today that it achieved an increase by 240% of profits in the second quarter of this year. In a statement published on Kuwait stock markets web site, the bank said that the net profits have increased by 6.1 million dinars in the first three month compared to 1.8 million dinars of the same period of last year.

“Emaar” Company Wins Excellent International Classification

After granting the real estate “Ema’ar” company a positive insurance classification of the first degree by “Standard & Poor’s”, the provider of the researches of insurance evaluation in world stock markets, and the classification of A/3 of “Modies for Investors Services” company, the future expectations of the company are described as stable.

A Prominent Palestinian Businessman Seeks Confiscating Properties of Leading Arab Company

Lawyers of the prominent Palestinian businessman, Mounib al-Masri, said that he is planning to take legal measures for confiscating the properties of the contractors union company “CCC” due to dispute about a concession for profits sharing in the oil field of “Masela” in Yemen.

Rise of the Volume of Non-Oil Exports Index in Iran

Director of the Custom House in the Iranian Khormasher city said yesterday that the volume of non-oil exports of this custom house has increased by 17% compared to the same period of last year. According to Arna agency, 220.000 tons of goods were exported with a total value of 87 million US$ to the Gulf states including food stuff, agricultural and industrial products as well as construction materials.

Companies Indexes

- Deputy Chairman of Civil Planes “Sokhoi” company expected to receive 100 orders of “Superjet-100” before the end of this year.
- Ford Company is planning to start assembling parts of a new model of “Mondeo” design in its factory in Leningrad city which was opened for the first time in 2002.
- A Group of Companies led by the Indian GMR company for the projects of the infrastructure has won a contract with a total value of 2 billion Euro (2.7) billion US$ for modernizing the second airport in the Turkish “Istanbul” city.
- The German “Lufthansa” company has hit a new record in the number of passengers during the first half of this year. The number of the company’s passengers reached 27 million passengers in the first half of this year.
- The Saudi-British Bank “SAB” announced that its profits declined during the first half of this year by 30.8% reaching 558 million riyals (148.7) million US$ compared to the same period of last year.

Small Indexes

- Russian Deputy Prime Minister, Aleksandr Dmitriyevich Zhukov, expected the growth rate of the Russian GDP and the industrial production to increase at the end of this year by 7%.
- The Unified European currency hit a new record opposite to the American US Dollar. Euro prices increased Tuesday afternoon by 1.3690 US dollars.
- The resident representative of the “UNDP” in Algeria asserted that North Africa region is able to realize all developmental goals of the millennium before 2015.
- The value of Algeria’s imports of wheat reached 500 million US$ till the end of May.
- The Algerian Minister of Energy has revealed that the government intends to increase gasoline prices to promote the consuming of fuels which are less polluted for environment.
- The Iranian Ambassador to Algeria, Abdi Al-Bayan, said that the Iranian companies are executing currently 40% of the projects of building houses in Central Asia countries.
- The US has spent more than 500 billion US$ on wars in Iraq and Afghanistan. The US spends 12 billion US$ on these conflicts according to a study carried out by the commission of researches in the Congress.

Bids & Contracts

- Google Company announced that it bought “Postini” company specialized in electronic security in return for 625 million US$.
- The contribution of the Italian “Pizi Insam” company has reached 158 million Euro in four Algerian cement factories.

Exhibitions & Contracts

- Under the Auspices of the Iranian “GBC”, the international exhibition for Computers and E-Trade dedicated to the organization of the newly independent states with the participation of 70 Iranian companies and 62 foreign companies, was opened in the “Azeri” capital “Baco”.

Indicators is a daily economic watch newsletter about the Near East, issued by New Orient News agency in Beirut, Lebanon. It is available on Voltairenet.org in Arabic and English. Also worth a read is Tendencies, the daily Near East political watch newsletter, available in Arabic, English and French languages.